Universal Salvage PLC
10 September 2003
UNIVERSAL SALVAGE PLC
At Universal Salvage's Annual General Meeting today, chairman Alexander Foster,
will make the following statement on current trading,
'The first two months of the new financial year performed largely in line with
management expectations. However, the results of our July and August auction
sales indicate that profit per unit achieved over the summer period was markedly
lower than earlier in the year, with part of this reduction being accounted for
by the widely-reported fall in used car prices during the summer.
We have also experienced a reduction in expected vehicle volumes. This was
partly as a result of insurance claims frequency being considerably down on the
same period last year, due to the long dry summer. It is also the result of a
delay in the commencement of new insurance contracts.
These factors are likely to have an impact on our results for the current year,
which will therefore be below current market expectations.
We continue to make progress in building volumes in our core insurance market
and are in final stage negotiations with new accounts. We have also renewed all
our existing insurance contracts. Dealer part-exchange vehicles and end of life
vehicles ('ELV') are growing well and we continue to win new business with local
authorities and motor dealer groups.
In addition, we are in advanced negotiations with motor manufacturers to provide
the solution to their obligations under European ELV Legislation.
While short-term prospects are disappointing, we continue to remain confident in
the medium term prospects for the group.'
Universal Salvage plc
Martin Hynes, chief executive Tel: 07711 137435
Andy Somerville, finance director Tel: 07775 942076
Katie Tzouliadis Tel: 020 7448 1000
This information is provided by RNS
The company news service from the London Stock Exchange